The south is certainly screwed. IVF and Riombara can fight over the little un-blighted bridge between them I guess. IVF's position is terrible, one small city and blight on all sides.
For the North, I guess it depends on what the limit is on the number of troop leaders and troops the Overlord can summon to attack us and how well we do in killing them off.
I know various people have speculated on the resource the Daimons use, but there was never a way to confirm who was right to my knowledge. The other invaders were easier to figure out, Monsters used the region's population as food, the Undead well, the dead were their resource. The closest thing I can guess is that the Daimon's use human souls in some fashion ? Even if true, knowing it doesn't seem very helpful.